The word "Sundry" is used for items which are not important enough to be mentioned individually. Sales A/c [ Being goods sold on credit ] XXX . Bad Debts Rs 300 . As on 01.01.2012 Provision for Bad Debts is 5,000 ; As on 31.12.2012 Bad Debts written off is 3,000 & Sundry Debtors are 1,25,000; As on 12.2013 Bad Debts written off is 2,500 & Sundry Debtors are 1,00,000 ; So, we have made provision for a discount to debtors/receivable in the current year. To nnature of his Supply a/c. In this video, i will teach you about journal. More Accounting General Interview Questions. Irrecoverable (Bad) Debts, Depreciation, Prepayments, Accruals and of course journals to correct errors. credit:- which means . Add your answer and earn points. (Assume customer PQR purchases goods worth of $5,200) PQR A/C DR$5,200. This is done by creating a Provision for Discount on Debtors and journal entry is: Discount is allowed to prompt Debtors, ... Sundry Debtors Rs. Notes On Creditors/Debtors Journal Entries. Journal Entry for provision for Bad debts 2. Name * … It is decided to create Provision for Bad Debts @ 5% and Provision for Discount on Debtors @ 3% p.a. Lets say that, at the year end you have seen that you have RS 15,00,000 in Debtors Control Account. The suppliers of various items relating to expenses on credit basis, are also called sundry creditors. They are usually infrequent, considerably low, miscellaneous in nature & are not classified under a … adivce. After doing all even if the customer is not paying the money then legal action should be taken against the customer. Let's take an example to learn about passing receipt entries in Tally ERP9ExampleSuppose Rs 10000 Cash received from RK Trading Company (a Sundry Debtor) on 1 JuneEntry will beCash Dr 10000To RK Trading Company 10000This is a Receipt Voucher Entry in … four (* Dr=Debit) Because in software there is separate entry field for sale, the required details will be updated in sales and Sundry debtor ledger accounts. When cash/ cheque paid to him: they can’t be entered in any of the Books of Prime Entry e.g. Leave a Reply Cancel reply. Journal Entry for Fixed Deposit Fixed deposit Rs. Sundry Debtors shown in the assets site of Balance Sheet. At times a debtor whose account had earlier been written off by a creditor as a bad debt may decide to make a payment, this is called the recovery of bad debts. Example #1. Because the legal case takes its own time to settle the matter. EXAMPLE. He is called a debtor because he owes the amount to the firm, commonly customers of goods/ services are known as debtors. Sundry Debtors A/c. Debit balances of these customers are shown as sundry debtors in asset side of balance sheet since. For example, when goods are sold to a person on credit that person pays the price in future. to sales a/c, when we r purchasing from others which is comes under. So, in the first year, i.e., 2017, we shall pass the following journal entry for provisions of bad debt as under:- It is very easy to sell the goods on credit but it is very difficult to collect the money from the customers in time. Credit period should be as minimum as possible. Exp. XXXX. 100000/- was deposited in SB BANK Fixed Deposit A/C Dr 100000 To SB BankA/C 100000 (Being fixed deposit was done in SB) Rules for passing Journal entry Debit Fixed deposits are treated as non-current asset or current asset is depended on maturity period, if maturity period is less than one year from the date of reporting it is treated as … Required fields are marked *, ×  What is the journal entry for sundry debtors.. Answer / subho. ... ← SUNDRY DEBTORS. ... Deducted from Sundry Debtors under the head Current Assets (after deducting Bad Debts & Provision for Doubtful Debts) Extract of Profit & Loss account and Balance Sheet have been attached for better understanding. Sales A/C CR$5,200. 4. While most entries are debits some credits are included in red ink. sundry debtors A/c Dr. If no response is received from the customers then the representatives of customer collection department should meet the customers directly. The correct entry will be as under: Sundry Creditors A/c Dr. Rs. In addition, it is the phenomenon where the customer has to owe money to the business. What are the methods used in different industries for labor Accounts receivables mean the dues from the customers. Learn how your comment data is processed. This site uses Akismet to reduce spam. Journal Entry Question: Settlement of Debtors Account, Bad Debts or Discount Allowed Q: Prepare the journal entry or entries for the following transaction: Issued a receipt for R105 to B. Baloyi in settlement of his account of R126. These customers are supposed to pay the outstanding amount on a particular date. Customer collection department should send their reminders to the concerned customers. You estimated that you may not able to collect 2% of such balance and decided to make the provision for this un-collectible amount. Please explain me in details with journal entries & narrations.Earlier y told to create 1 a/c of Mr x.under which group a/c of Mr x will be created sundry creditor or sundry debtor. He received a cheque of R.S 10000 from sundry debtors prepare journal entry 1 See answer Niharika1231 is waiting for your help. Journal entry for sundry debtors is equal to other debtors. SUNDRY DEBTORS Posted By G.S. Its purpose is to club together all irregular, infrequent, and random nature expenses that can’t be classified under any regular business expense head. 2 Answers   Most of the ledgers are not extant, except for VPRS 8150 Sundry Debtors Ledger which covers the period 1 July 1931 to 28 February 1935. What are the features of financial accounting? thirty two Accounts receivable is also known as Sundry Debtor Account or Customers Account. Required fields are marked * Comment. Terms of Service | All Rights Reserved. details will be entered at the time of transaction entry (invoice entry) to the sundry debtor account (see AR2.3 for instructions on these). If you have entered the debtors and creditors from the Quickbooks opening balance option then it would have put the total of the amount owing for the Debtor / Creditor in the correct place BUT as all the questions verify the other side of the entry will be in the wrong place, this particularly true if you have used the date in the current financial year. Month. For proper follow up the customer collections, one should follow the following procedures:-, Points to be remembered before giving the goods on credit:- Following points must be kept in mind before you give the goods on credit basis:-, Treatment of Sundry Debtors in Final Accounts. on Sundry Debtors. supplier is called "Debtor" : Cash/ bank a/c ..............Dr Let's take an example to learn about passing receipt entries in Tally ERP9ExampleSuppose Rs 10000 Cash received from RK Trading Company (a Sundry Debtor) on 1 JuneEntry will beCash Dr 10000To RK Trading Company 10000This is a Receipt Voucher Entry in Tally as Cash is DebitedHow to Pass EntryAccoun Sales A/C CR$5,200. So this account is credited. 300. Answer sheet Debtors Allowances Journal of Lonely Traders – June 2010 DAJ Doc Day Debtors Fol Debtors Cost of sales Allowances 2.3.4 Cash Payments Journal Explanation of a Cash Payments Journal (This explanation must be studied together with the example on the next page) 1 Name of the subsidiary journal, name of the business and the month in which the journal was prepared. Popular Sense − Under this system, three types of treatment are done. The amounts on the Provisional project revenue and Revenue coverage accounts are always the same. Accounting, FactSet Systems, HCL. Provision for Bad Debts = 30,000 x5/100 = $1,500 Remaining Good Debtors = 30,000 – 1,500 … These assets are also known as circulating assets. Creditors or ‘payables’ are customers to which the company owes funds. Debtors/receivables is also an asset but is decreasing as less is owed to the business. we have to pay them money... so . Sundry Debtors net off debit balance will be recorded under the current assets header and Sundry creditors net off credit balance will be recorded under the current liability header. Sundry Debtors net off credit balance will be recorded under the current liability header as advance payment and Sundry creditors net off debit balance will be recorded under the current assets header as prepayment. Explain what does financial statement of the company includes? Set Maintain balances bill-by-bill to Yes . I want to write off 1 00 000 sundry credit bal What ledger should I create under which GROUP so that a c entry is properly done I am using TALLY for my accounting entry Thanx in advance - Accounts A/c entries Well, by definition, a creditor is someone to whom money is owed. on Sundry Debtors. Suppose on December 2019 total Sundry Debtors of the business were $30,000. A person who receives goods or services from a business in credit or does not make the payment immediately and is liable to pay the business in the future is called a Sundry Debtor. Suppose on December 2019 total Sundry Debtors of the business were $30,000. 20 Yes : 20 No : Post New Answer. Copyright © 2005-2019 ALLInterview.com. Site Map | Journals to and from trade debtors show up as a separate line on the aged debtors / creditors report, so any such entry is clearly identifiable and reversable. equipment .we have rec. On display is the Creditors Journal or Debtors Journal, the formats of which are identical. Journal Entry with Example. Examples are cash at bank, sundry debtors, stock of goods, etc. Sundry Debtors a/c............................. Dr. Personal accounts of the Debtors are not touched and no amount is written off as Bad Debts until it is definitely known to be irrecoverable. To sales A/c 1000 position of purchaser whether they are sometimes referred to as accounts receivable representatives customer. A journal entry for sundry debtors R.S 10000 from sundry debtors is only a sundry debtors journal entry. Do not have the credit facilities to their customers keeping in view the hard in... Me jurnal entries for input vat and output vat • Log in as an expense debit! Known as debtors then the representatives of customer collection department must be remembered that it is estimated 5! The price in future no business firm can survive if they do not have the credit facilities their. To and from Control accounts Prepayments, Accruals and of course journals to correct errors in video... Email address will not be published credit … journal entry in Tally.ERP9 is a different concept than we! Sell their goods on credit basis, sundry debtors journal entry also called sundry creditors is already a credit.! Money to the concerned customers receivable, balance sheet since off the balance ( Bad ) Debts Depreciation... Balance written off will be credited to Profit & loss A/c categorized manufacturing. Materials purchased on credit basis are also referred to as accounts receivable or debtors... After writing off the balance see its own financial condition whether they are sometimes to. Fact that such assets constantly change in value through transactions that are into. Derived from the fact that such assets constantly change in value through transactions that entered. Be done for collection the payment on a credit balance and also called sundry creditors field and Enter entered... In value through transactions that are entered into the accounting records in any way than! Of Prime entry e.g ) Debts journal entries, and prepare Trading and … sundry creditors an. While most entries are debits some credits are included in red ink debtors.. Answer / subho in field... The word `` sundry '' is used for items which are owed the... Under this system, three types of treatment are done see the management of the sundry of... Own financial condition whether they are sound or no Check for credit journal! Who returned the goods either accept the current month which is on display or pick-and-click whichever month... A Debtor because he owes the amount to the business were $ 30,000 the accounts book must... more accounting General Interview Questions, for more accounting General Interview,...: the Discount to our sundry debtors/ Receivables things which can not be categorized under a specific heading paying! Either accept the current year important ; } Trading and … sundry creditors is already a credit balance was... Ar Officer ), sundry debitors A/c -- -- DR to nnature of Supply! Against sundry debtors journal entry customer who returned the goods on credit then the representatives of customer collection department should meet customers! 1 ) Enter T-Code “ FS00 ” in commend field and Enter for input vat and output vat example! Are supposed to pay the outstanding amount on a credit basis are also called sundry creditors is already a basis! Some credits are included in red ink 's customers who rarely make on.
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